Donald Trump says US and China could decouple, if ‘they don’t treat us right’
America ‘doesn’t have to do business’ with China, president says in an interview with Fox News. Comments come as senior officials wait to review the phase one trade deal signed in January.
Is Donald Trump bluffing about starting a financial war with China? Chinese officials aren’t so sure
As the US president ups the rhetoric, Chinese officials are taking seriously the possibility of a financial war, which could take the form of the US cutting the country out of the international payments system or seizing Chinese assets.
US-China dispute: watch out Hong Kong, the credit cards in our wallets are in America’s pocket
America has some chilling options if it pursues a financial cold war with China. Not only can it deny Hong Kong’s banks access to Swift, but it can also stop our credit cards and even restrict the printing of the city’s currency.
US-China trade talks opportunity for Beijing to ‘negotiate and manage’ growing hostilities
Beijing is expected to use upcoming trade talks between China and the US to prevent bilateral relations from collapsing completely, analysts say. Relations have sunk to all time lows in recent weeks as the two nations spar over the coronavirus pandemic, Hong Kong, Xinjiang and technology.
US-China relations: Beijing condemns financial sanctions on Hong Kong
America’s ‘actions to undermine financial stability in Hong Kong are not only against the Chinese people but also against the people of the world’, CBIRC says. But watchdog offers little advice on how lenders in the city should deal with the new restrictions.
‘Damage control’ at heart of Chinese Foreign Minister Wang Yi’s mission to Europe
Leading diplomat’s five-nation tour expected to focus on 5G and Huawei as more countries ban Chinese technology giant. Beijing’s hard line on Hong Kong and its handling of the coronavirus pandemic have also drawn European criticism.
Coronavirus: China under pressure to detail debt relief before G20 talks
Beijing creditors would account for the bulk of the burden if loan payments to dozens of low-income countries were rescheduled again. The World Bank president says the terms of the lending need to be disclosed.
Defaults in China’s US$4.1 trillion corporate bond market could hit record high this year as recovery remains fragile
Some 3.65 trillion yuan (US$529 billion) of notes mature by year-end Chinese firms reneged on 10.4 billion yuan of notes in July and about the same amount so far in August, with developer Tahoe Group among the latest to miss payments.
China’s banks must innovate to help small businesses weather ‘complex and severe’ economic environment
People’s Bank of China governor Yi Gang has called on banks to help small businesses weather the severe economic environment through fintech innovation. Premier Li Keqiang said in a visit to Chongqing that China’s economy can grow this year if the nation achieves its target of adding 9 million jobs.
Inside China Tech: US sanctions leave Huawei all shook up
New measures by the Trump administration make it tougher for Huawei to acquire semiconductors produced with US technology. While expressing anger at the US government’s move, Beijing has not announced any measures to retaliate.
Global Impact newsletter: Huawei finds itself in the eye of the US-China tech storm
Global Impact is a fortnightly curated newsletter featuring a news topic originating in China with a significant macro impact for our newsreaders around the world. In this sixth edition we look at Chinese telecommunications giant Huawei and how it came to be at the centre of the rapidly escalating US-China rivalry over technology.
TikTok to mount legal challenge against US government’s August 6 ban of short video app by Monday
TikTok’s legal challenge pertains to an August 6 presidential order, which directed the Secretary of Commerce to come up with a list of transactions involving ByteDance and its holdings that should be banned after 45 days. TikTok plans to argue that the August 6 executive order’s reliance on the International Emergency Economic Powers Act deprives it of due process, according to the sources.
TikTok faces ‘uphill struggle’ in court challenge to Donald Trump’s ban
The popular Chinese-owned video sharing platform has confirmed it will sue over the executive order to wind down its US operations. Company could challenge order on grounds of due process or first amendment, but some observers are sceptical about its chances of success.
China to use Yangtze River Delta development to showcase ‘dual circulation’ economic strategy
President Xi Jinping says the region centred around Shanghai will be a model for the implementation of the government’s ‘dual circulation ‘strategy’. Xi announced the plan in May as a way of offsetting external shocks and uncertainty by focusing on developing China’s domestic economy.
With European economies mired in recession, is the euro living on borrowed time?
The rebound in the euro is simply the flip side of the US dollar being undermined by uncertainty about the presidential election. The monetary muddle in Europe won’t help the currency after the dust settles in America Large holders of euros like China have been sorely tested before, but a major European credit event or acute political pressure could easily spark another euro debt crisis if confidence dives again. Up to 20 per cent of China’s US$3.15 trillion of foreign exchange reserves might be held in euro assets, a formidable wall of money for world markets to contend with if liquidation pressures rise. China would be joined by a mighty throng of official and private sellers in the worst-case scenario. It could turn into a nasty bloodbath with euro-zone policy unity tested to breaking point.
China has most of world’s biggest brokerages as deregulation, stock rally, merger prospect fuel upsurge
China has six of the world’s 10 most valuable brokerages, including Citic Securities and CSC Financial, while the US owns three. Chinese brokerages have been on a roll as regulators cut trading barriers for small companies, stocks rally and prospects of an industry consolidation mount.
Xiaomi’s spectacular gain outshines Alibaba and Wuxi Biologics in first week since trio tapped for Hang Seng Index
Xiaomi shot up more than 18 per cent in first week since announcement it would be added to the benchmark. The three stocks falling off the index -Want Want China, Sino Land and China Shenhua Energy – posted weekly declines.
A bubble? The stellar growth of China’s e-commerce upstart Pinduoduo
At $114bn, its market value is above HSBC – but questions remain about business model and if it will ever be profitable.
Pinduoduo pledges focus on necessities, shares fall 12% on Q2 miss
The e-commerce firm is redoubling efforts to connect buyers with farmers rather than branded products.
‘Little sisters’ army of young women in China reshaping mergers and acquisitions as they drive spending
Young women in China are the biggest consumers of pet products and services; women make three out of four purchases. Deal makers are studying young women’s buying habits as they consider M&As.
This constant mistrust of Chinese science and technology must be countered
China’s contribution in these areas will shape the next 50 years and its innovations are needed for the good of humanity. China should not be bullied by the West, but it can counter its demonisation with transparency, talent management and improved standards of English.
China’s electric car start-ups accelerate plans to grab market share, but mainland Chinese buyers can’t look beyond Tesla
Chinese EV makers dream of unseating Tesla by raising capital and developing models with longer driving ranges, but they are yet to strike a chord with consumers. Tesla has managed to eke out profits only for a few quarters in its 10 years as a publicly listed company.
Evergrande’s electric car unit dazzles investors with flashy ad campaigns. But the quality of the products will count eventually
Shares of the newly renamed China Evergrande New Energy Vehicle Group are soaring on the back of an intense marketing campaign that includes bombarding TVs with frequent, short ads. Such marketing gimmicks, which seem to put style before substance, may not be enough in the long run to keep investors’ in thrall, warns analyst.
Xpeng seeks to raise up to US$1.1 billion in New York IPO as electric car maker prepares to challenge Tesla in China
Xpeng’s share sale follows in the tracks of Chinese peer Li Auto’s debut on Nasdaq last month after its US$1.1 billion IPO. Xpeng has pre-sold 49 per cent of the ADSs on offer.
Xpeng, next up in wave of US IPOs, attracts big-name investors
Xpeng Motors is priming for a public listing in New York where it could raise up to $1.1 billion from a number of high-profile backers, including Chinese technology giants Alibaba and Xiaomi. Xpeng’s listing is timed to benefit from strong investor appetite for electric vehicle stocks, a spillover effect from Tesla’s massive run this year as it ramped up production of China-made Model 3 sedans.
China planning high-speed rail freight network to help e-commerce sector
The country already has an extensive high-speed passenger network and is now looking to develop new goods trains. Rail bosses believe demand from online retailers will help drive the development of the network.
China’s flooding slams rare earth, fertilizer and other industries
Economy recovering from coronavirus lockdowns now threatened by deluge Weeks of flooding along the Yangtze River, China’s longest waterway, has crippled commodity production, weighing on an economy that has been shaking off the coronavirus downturn.
China Started ‘Emergency Use’ of COVID-19 Vaccine in July: Report
High-priority individuals, including medical professionals and workers from essential industries, are already eligible to be inoculated against the novel coronavirus.
Japan gets ready to lift COVID-19 reentry ban on foreigners
Move comes after criticism that curbs on long-term residents hurt business The problem has “a major impact” on both the European and Japanese economies, said Michael Mroczek, president of the European Business Council in Japan. But even as long-term residents are allowed to return, Japan will maintain restrictions on new entries from countries on its list. Japan is also moving to restart business travel with countries where coronavirus cases are ebbing, such as Singapore. Long-term foreign residents in Japan have been allowed to go to and return from Thailand and Vietnam for business purposes after undergoing a test upon arrival and a two-week self-quarantine and a similar arrangement is in the works with Malaysia. Japan is also discussing travel corridors with China, South Korea and Taiwan.
What does US Confucius Institute move mean for Chinese soft power in Asia?
The institute’s problems go beyond the US, which has branded them ‘foreign missions’. They are also under scrutiny in Australia, India and beyond Has Washington muddled up the difference between a sinister soft-power push and teaching students how to say ‘I’d like to go shopping’ in Chinese?
Could Russia side with the US and India against China?
Cracks are opening in the Russia-China relationship, from the status of Vladivostok to Russian arms sales to India The biggest crack involves New Delhi’s suggestion that Moscow join the US-led Indo-Pacific grouping, which is widely seen as anti-China
China’s ageing rural peasants labour into their twilight years as pensions ‘cover only oil and salt’
The lack of support for elderly rural residents has become a worsening socio-economic problem for China amid its rapid urbanisation push. Decades of aggressive family-planning measures mean one out of four residents in the countryside will be older than 60 by 2025.
Small businesses in emerging Asia need more support to survive coronavirus fallout, International Finance Corporation says
The World Bank’s sister organisation is examining ways to take on some risk from loans to support small businesses, regional director says. IFC unveiled US$4 billion programme in July to help get critical supplies, health care to developing countries.
Supply Chain Risk Management, Part 5: Moving Manufacturing to Vietnam, Thailand, Malaysia, or India (Pros & Cons)
To conclude, I’d like you to keep one thing in mind. If you already have production in China, what is the set that will bring your risk exposure down the most? Is it China + Vietnam? Two neighbouring countries that are similar in more than one way? In contrast, China + India seems like a good risk mitigation combination, since India is part of the nascent ‘anti-China block’. Except if they go to war against each other, naturally, but that seems unlikely. Many events of the past 3 years have taken us by surprise, and there is much uncertainty about what will happen over the next 5-10 years. That uncertainty actually makes supply chain diversification more important.
China urges Vietnam to build on past agreements in South China Sea
Chinese Foreign Minister Wang Yi uses anniversary of land border pact to call for negotiations over disputed waterway. Both countries should focus on long-term cooperation to mutually sustain stability in the region, Wang says.
China meets with Asean diplomats to propose resuming South China Sea talks
Beijing conveys its concerns about the rising risk of conflict over the contested waters. Discussion follows US Secretary of State Mike Pompeo’s announcement of a harder line concerning China’s ‘unlawful’ claims.
‘Traitors’ to China, past and present – stories of those who served enemy states
China-born advisers to the US government are considered traitors by many, but they are not the first to be called hanjian. Rebel Shi Jingtang granted large swathes of northern China to the invading Khitans, after they helped him bring down the Later Tang dynasty in 936.
Why there won’t be a US-China war
China has spent massively on anti-access/area denial weapons that would make war impractical for the US.
Xinjiang’s sprawling conglomerate may be biggest ever to face US sanctions
Three officials from the Xinjiang Production and Construction Corps have been put on a US sanctions list for links to alleged human rights abuses. XPCC has stakes in more than 800,000 companies and groups in 140 countries.
Gender equality in China, from birth ratio to politics and unpaid care work, still has a long way to go: report
Chinese government report published by the UN Population Fund finds business leadership and politics remain heavily skewed towards men. Gender disparity in education continues to be far higher in rural areas.
Is the opposition in Hong Kong clever enough to focus on winnable political battles with Beijing?
Politics, like nature, abhors a vacuum. If no meaningful initiatives are being put forward, someone else is likely to step in, as happened with Beijing and the national security law. This is all the more reason for the pan-dems to float ideas for Article 23 legislation and an extradition law revamp first.
How to Prepare for the Worst in China and Why You Should
It seems like every time I talk with serious China people these days, they want to talk about what is going to happen in China regarding treatment of foreign companies and foreigners. Many of them say they wince every time there is an announcement of a Western company planning to leave China or reduce its footprint there. As one friend of mine puts it, “the fewer foreign companies and foreigners that remain in China, the greater the chance it will be my company or my family that gets singled out for mistreatment.”
Is China Still a Developing Country? And Why It Matters for Energy and Climate
China’s dramatic economic growth in the 21st century has made it not only the second largest economy in the world but also a powerhouse in the global energy system. Now, as the top energy consumer and the biggest emitter of greenhouse gases, China is being closely watched and judged as its impact on energy markets and climate grows more profound. Looking forward, many issues are expected to shape the evolution of China’s energy sector, not least of which is its development status.
Chemical leak causes panic in Chinese city, but government says there’s nothing to worry about
Residents of Leshan, Sichuan province flee their homes as ‘thick white fog’ is seen billowing from polysilicon plant. But authorities say ‘only a small amount of hydrogen chloride gas’ leaked and there is no risk to people’s health.
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